https://www.taxtmi.com/caselaws?id=39201 A loan or advance by a closely held company to its shareholder is treated as deemed dividend under section 2(6A)(e) of the Indian Income-tax Act, 1922 to the extent of the company's accumulated profits. The provision operates on the whole payment made to the shareholder, not merely on a proportionate part referable to shareholding. Accordingly, where the loan falls within the section and accumulated profits are sufficient, the full amount of the loan is taxable as dividend up to the available profits. On the stated facts, the loan was less than the accumulated profits and was therefore assessable in full as dividend. en-us Thu, 05 Dec 1974 00:00:00 +0530 Tue, 13 Apr 2010 16:58:13 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=39201 A loan or advance by a closely held company to its shareholder is treated as deemed dividend under section 2(6A)(e) of the Indian Income-tax Act, 1922 to the extent of the company's accumulated profits. The provision operates on the whole payment made to the shareholder, not merely on a proportionate part referable to shareholding. Accordingly, where the loan falls within the section and accumulated profits are sufficient, the full amount of the loan is taxable as dividend up to the available profits. On the stated facts, the loan was less than the accumulated profits and was therefore assessable in full as dividend. Case-Laws Income Tax Thu, 05 Dec 1974 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=39201